MODULE 1 IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES

PURPOSE Some businesses attempt to expand their international operations by seeking foreign markets appropriate for existing products and services. Other enterprises assess foreign business environments in an attempt to meet needs in those markets. In this first module, your goal is to conduct a preliminary assessment of geographic, economic, social-cultural, and political-legal factors that create global business opportunities in foreign markets. Also, you should consider how technology could create new foreign business opportunities by expanding possibilities for production, marketing, and distribution of goods and services. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the Research Components section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 1, 4 TEXT HYPERLINKS globalization of markets (Chapter 1, p. 6) globalization of production (Chap. 1, p. 7) role of technological change (Chap. 1, p. 11) benefits of trade (Chap. 4, p. 125) absolute advantage (Chap. 4, p. 129) comparative advantage (Chap. 4, p. 133) VIDEO CLIPS Honda in North America U.S. Companies Doing Business Overseas

USEFUL WEB LINKS FOR MODULE 1 International Trade Administration at http://www.ita.doc.gov Asian country information at http://www.asnic.utexas.edu Eastern European country information at http://www.reenic.utexas.edu Latin American country information at http://www.lanic.utexas.edu Middle East country information at http://www.menic.utexas.edu Current international information at http://www.dushkin.com/globalstudies Current country information at http://www.yahoo.com/regional/countries World Factbook at http://www.odci.gov/cia/publications/nsolo/wfb-all.htm World Trade Association http://www.wtca.org United States International Trade Commission at http://www.usitc.gov Federation of International Trade Associations http://www.fita.org

Small Business Administration at http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links at http://www.t-bird.edu International Business Links at http://www.ibrc.bschool.ukans.edu/index.htm Maps at http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http://www.snap.com RESEARCH COMPONENTS To plan a global business enterprise, research information related to the following areas: 1. GLOBAL BUSINESS OPPORTUNITIES. Potential foreign business opportunities may be viewed in two major categories: (A) Various country factors create international business opportunities. These include: natural resources, agricultural products, or geographic factors (climate or terrain) level of economic development and infrastructure cultural characteristics, social activities, or demographic trends changing political situations or legal factors technology that may enhance production or distribution of an item B) Existing companies attempt to expand into new markets around the world. List several possible global business opportunities that would be the basis for new or expanding international business operations. These business opportunities may be consumer goods or services or organizational goods and services. Organizational goods and services are those items sold to businesses, government agencies, nonprofit organizations, schools, hospitals, hotels, or other organizations. (Examples of global business opportunities include: processing of fresh fruit in Chile for distribution around the world, sale of water filtration systems in developing economies, sale of food products adapted to the tastes of different cultures, development of cellular telephone systems in countries with a weak communication infrastructure, and expansion of fast-food restaurants into countries with expanding economies.) 2. POTENTIAL MARKETS. Discuss one or more of the global business opportunities from above in terms of: (a) a specific product or service, including customer benefits, and (b) a potential marketa country that would be appropriate

for this business opportunity. 3. ABSOLUTE AND COMPARATIVE ADVANTAGES. Analyze for the presence of an absolute or comparative advantage that might be related to a business opportunity in the country where the item will be produced or sold. Describe how this analysis might influence the success of your proposed business idea. (For example, the availability of natural resources can make a business opportunity cost efficient.) 4. BUSINESS OPPORTUNITY ANALYSIS. Compare two or more proposed business opportunities based on factors such as foreign market potential, start-up costs, and foreign business risks. (For example, a proposal to develop construct new highways may be appropriate for a developing economy. However, the risks in this market are probably greater than in an industrialized nation.) 5. THE ACTION PLAN. Recommend one or more foreign business opportunities (with a specific foreign market) for an existing company or a new enterprise. Provide evidence to support your proposal. SUPPLEMENTAL ACTIVITY Based on your review of appropriate Web sites and library materials, research the international operations of a company doing business in several countries. Obtain information related to: (1) the products sold in various regions of the world; (2) current and planned business activities in specific regions of the world--Asia, Africa, Eastern Europe, Middle East, Latin America; (3) the company's strengths and weaknesses related to global business activities; and (4) future actions that might be suggested for the company's international operations.